Comments on: Save interest on homeloan

By: BT

BT — Fri, 11 Feb 2011 04:35:26 +0000

I read that we can apply Overdraft facility for house loan. How does it work? What is the advantanges compared with conventional house loan and who is qualified to apply. Any idea? Thanks.

By: KCLau

KCLau — Fri, 14 May 2010 05:14:34 +0000

there is only one more year, you may wait until the penalty period is over.
Anyway, you can always talk to a mortgage officer. Ask him/her to analyze whether it is worth refinancing.

By: BT

BT — Thu, 13 May 2010 04:12:52 +0000

Hi KC,

Heard that bank is standardised the rate to BLR-1.9% (non zero cost package) now. My bank is currently offer BLR-0.75% and holding period end 1 more year from now. Penalty is 3.5%.

Do you think is good time to refinance my house?

By: KCLau

KCLau — Thu, 13 May 2010 02:51:47 +0000

0.4% difference for 100k loan is only RM400.
But the penalty of 2% will be RM2000 within the first three years.
According to this comparison, the “no-lock-in period” offer is better.
If you sell in two years, you will have paid additional RM800 interest charges only compared to RM2000.

By: Janelle

Janelle — Thu, 13 May 2010 02:24:02 +0000

I purchased a landed property recently and plan to sell off once the price appreciated. Bank offer me BLR-1.5% with no lock in period & BLR-1.9% with 3years lock in period (penalty 2% will be charged if sell within lock in period)… which one should I get? if I want to sell off in 2years time.

By: SLK

SLK — Fri, 13 Nov 2009 03:58:04 +0000

Hi! Thanks for sharing all your personal financial tips, i truly enjoy reading them all and find it very practical. Wish to consult this case in point, i got RM257k housing loan from MBB for 30 yrs, the 5 yr locked in period will be over by this mth end, and the interest rate charged moving fwd will be BLR+0.35%. It surely make sense for me to seek refinancing since everywhere else is offering BLR-1.8% (just last week Std Chartered closing offer period was BLR-2.2%). Ive submitted a refinancing appln for Std Chartered Mortgage One loan for a higher amount of RM270k (the retirement of MBB loan is RM230k, the excess will be a flexi loan at rate of BLR-2.2%, which we thought is a good deal), and is now pending approval. Apart from the interest savings i could benefit from the refinancing, i wish to know whether i shld continue to seek for the same 30 yr tenure (longest repayment plan, i.e. at age 65 yr) or the shortest possible tenure (by maintaining the same repayment amount to MBB with Std Chartered). Wld the choice of property here a factor for consideration for how long the tenure of loan repayment is? I actually have plans to move in to landed property in medium term, but not sure whether ill be selling this current condo. Hubbys view is to seek longest tenure possible since we may sell off this current condo and hope to make a gain OR we could always seek a better refinancing deal upon expiry of 5 yr lock in period again. But i tot we shld clear off as much obligations as soon as possible? tqs

By: KCLau

KCLau — Tue, 03 Nov 2009 02:38:36 +0000

You will need to find out from the bank

By: Lennie

Lennie — Mon, 02 Nov 2009 06:10:06 +0000

I’ve got an offer for refinance from OCBC, and already signed legal documents. Later, my original bank (Citibank) counter offer me with competitive rate. May I know if there any issue if I want to cancel the refinancing from OCBC, and will there be any additional charges?

Lennie

By: KCLau

KCLau — Thu, 24 Sep 2009 04:33:13 +0000

Hi Lai,

Since yours is already a good deal .. you just need to refinance when there is a good deal offered at the time the lock in period is over.
You can definitely write in to the bank to ask for a better rate anytime. Some request do work.

By: Lai

Lai — Sat, 19 Sep 2009 17:22:11 +0000

hi KC,

i have bought a property of RM300,000, and the interest rate currently is BLR (5.55) – 2.2%, with tenure of 40 years. i was wondering, at what rate should i refinance my loan as it is already a very good deal… unless the reason i refinance is for cashflow purpose, i can’t figure out the idea of refinance after lock in period. please advise and enlighten me, thank you.

i also heard some bankers telling me that if the interest is low, even if the lock in period is not over yet, we can actually write in to the bank and they may reduce the interest, after all they don’t want to lose us as client to other banks who like in your situation, bank absorb all moving cost… is that possible? thanks..

By: KCLau

KCLau — Wed, 26 Aug 2009 07:10:03 +0000

Hi Joey,

It also depends on the penalty amount. It is best to refinance when the penalty period is over.

By: Joey

Joey — Tue, 25 Aug 2009 02:36:13 +0000

Hi KC, as you mentioned that your loan in within the lock in period, did the saving take into consideration the penalty that you have to pay? As Zero Moving Cost from bank did not cover the penalty of your loan in lock in period.

By: KCLau

KCLau — Thu, 13 Aug 2009 03:05:41 +0000

Hi Yati,

Refinancing is to take advantage of the lower interest rate normally offered to new loan.
Generally, you will save interest paid for your case. You should talk to some bankers to learn more about the possibility.

By: Yati

Yati — Thu, 13 Aug 2009 02:33:35 +0000

Hi KC,

I am always interested in refinancing. Just curious to know, if my current loan will finish within 13 years (which I signed for a 20 years period only since 2001), is it recommended to do the refinancing?. If I’m not mistaken, the new refinancing loan will take up many years ahead and the difference of the monthly repayments is not that much difference either. 13 years will pass by quickly (since I’m only in my early 30s). What is your advice? Will refinancing do good for me?

Thanks.

By: kclau

kclau — Wed, 15 Aug 2007 04:55:49 +0000

Hi Sunny,
I didn’t deal with fiscal-wise before. Sorry that I can’t give you more info about them.

By: Sunny

Sunny — Tue, 14 Aug 2007 06:26:00 +0000

I am currently applying for home-loan. Actually i look up fiscal-wise and they contacted me. Since it was a good deal for consultant to help me meet the banks, and apply for the homeloan, i appointed fiscal-wise.
However, i am still concern if this is legitamate and if they are trustworthy. Have you used their service before?

Thanks

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